EVERTEC Extends Credit Facility Maturities and Upsizes Revolver to $300 Million
Key Takeaways
- •EVERTEC amended and restated its credit agreement, extending the maturity of its Term Loan A and revolving credit facility while keeping the borrowing relationship in place.
- •The roughly $388 million Term Loan A was extended for up to five years, with pricing cut by 25 basis points versus the prior grid.
- •The revolving credit facility was extended and repriced 25 basis points lower, and its capacity rose from $200 million to $300 million, a $100 million increase in committed liquidity.
- •CFO Karla Cruz-Jusino said the transaction extends the maturity profile, lowers borrowing costs, and provides flexibility to pursue disciplined growth across Puerto Rico and Latin America.
- •Truist Bank acted as administrative and collateral agent, with Truist Securities, Banco Popular de Puerto Rico, Citizens Bank, FirstBank Puerto Rico, Fifth Third Bank, and Huntington National Bank serving as joint lead arrangers.
EVERTEC, Inc. (“Evertec” or the “Company”), a leading financial technology company in Latin America and the Caribbean, announced that it has entered into an amended and restated credit agreement — a structure that restates the prior credit agreement on updated terms while continuing the borrowing relationship — that extends the maturity of its Term Loan A and revolving credit facilities and provides the Company with continued financial flexibility to support its strategic priorities.
Under the amended agreement, Evertec’s approximately $388 million Term Loan A has been extended for up to five years, while pricing on the facility has been reduced by 25 basis points, equivalent to 0.25 percentage points, compared with the prior pricing grid. The Company’s revolving credit facility — a committed line that can be drawn, repaid, and redrawn during its term — was also extended and repriced 25 basis points lower, while its capacity increased from $200 million to $300 million, a $100 million increase in committed capacity that enhances available liquidity and financial flexibility. Taken together, the amendments address the three levers the Company highlighted in the transaction: its maturity profile, its borrowing costs, and its liquidity position. The announcement did not detail specific intended uses for the additional revolver capacity.
Evertec, headquartered in San Juan, Puerto Rico and listed on the New York Stock Exchange under the ticker EVTC, provides payment processing and financial technology services to businesses and financial institutions across Puerto Rico, Latin America, and the Caribbean.
“We are very pleased with the terms of our renewed credit facilities and the strong support we received from our banking partners,” said Karla Cruz-Jusino, Chief Financial Officer of EVERTEC. “The transaction extends our maturity profile, lowers our borrowing costs and provides additional financial flexibility as we continue to execute our strategy and pursue disciplined growth across Puerto Rico and Latin America.”
Truist Bank served as administrative agent and collateral agent in connection with the facilities. Truist Securities, Inc., Banco Popular de Puerto Rico, Citizens Bank, N.A., FirstBank Puerto Rico, Fifth Third Bank, National Association, and The Huntington National Bank acted as joint lead arrangers.
Source: GlobalFinTechSeries
